So many reasons for Trudeau to be defeated on October 21st.
One more reason we need to make sure the Trudeau Liberals are removed from power in October, and regain our strength in the oil and gas sector, along with the rest of our industries that have suffered through four years of weak leadership.
Despite claims that the world simply does not need Canadian oil since the US has now become a top producer, and net exporter, this is one more reason I challenge that assumption. I strongly argue that this spot will be short lived, as well as a rapid decline in less than a decade.
The produced water problem is steadily growing, the downside, reduced oil and gas production from existing wells as reservoir pressure drops drastically with increased infill drilling to offset the production declines. It is slowly becoming less economical based on returns, and investors are looking for alternatives, a trend that will follow the shale basin developments in the US.
Canada is poised to fill that position with guaranteed legacy assets found in not only our oilsands sector, but also with our high, proven longterm reserves of light tight oil and gas due to the geologic differences in shale reservoirs found in Alberta.
“The only missing piece of the puzzle is the right leadership to attain this goal.”
The only missing piece of the puzzle is the right leadership to attain this goal, restore the investor confidence in the sector with sound policies that build out infrastructure such as pipelines, LNG projects, and reductions in red tape to get the jobs done on a solid timeframe.
Without that, we will simply see the flight of capital continue to other jurisdictions that recognize the global demand increasing, and investing their capital in these areas. If you want proof, simply look at the growth in offshore deepwater and Arctic explorations, both of which were considered uneconomical at $100 plus oil.
As much as $9 billion will be needed over the next decade just to throw away dirty water in the world’s busiest shale field, according to Raymond James & Associates Inc.